Substantial Presence Test - IRS Pub 519 - Resident or Non Resident - Form 1040 or Form 1040NR - F1 OPT J1 H1B L1 TN visa taxes
Substantial Presence Test is one of the Tests, to determine, if you qualify as a Resident or Non Resident for Tax Purposes.Substantial Presence Test Calculator:
A foreign person will be considered a US resident for tax purposes if he/she passes the substantial presence test for the calendar year. The test must be applied each year that the individual is in the US.
* Students (F1,OPT, J1, Q Visas) are considered Non Resident Aliens for upto five years, and are exempted from the Substantial Presence Test for a period of five years. So for a period of five years, as long as they are an international student, they have to file international student tax forms Form 1040NR or Form 1040NR-EZ and explain their exemption in Form 8843.
International Students can use the International Student Tax Software, to file Form 1040NR-EZ and Form 8843, please click the link below to access the software;
International Student Tax Software - File Form 1040NR EZ and Form 8843 with Instructions
* Teacher, Researchers (J1, Q Visas) are considered Non Resident Aliens for upto two years, and are exempted from the Substantial Presence Test for a period of two years. So for the two years, they have to file Form 1040NR or Form 1040NR-EZ and explain their exemption in Form 8843.
For the other H1B, L1, TN and other Visa holders; To meet the Substantial Presence Test, a foreign person must:
* Be physically present in the US for at least 31 days during the current year, and
* Be physically present 183 days during the 3 year period that included the current year and the 2 years immediately before that, counting:
(a) All the days the individual was present in the current year, and
(b) 1/3 of the days the individual was present in the 1st year before the current year, and
(c) 1/6 of the days the individual was present in the 2nd year before the current year
If H1B, TN, L1 visa tax holders, do not pass the Substantial Presence Test, they are considered Non Resident Aliens and have to file Form 1040NR or Form 1040NR-EZ (they need not file Form 8843).
If H1B, TN, L1 visa holders, pass the Substantial Presence Test, they are considered Resident Aliens and can file Form 1040EZ or Form 1040.
We encourage you to post your questions in the Forum or Contact Us.
Substantial Presence Test - Calculator: